Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

v3.23.1
Leases (Tables)
 12 Months Ended
Jan. 02, 2023
Leases [Abstract]  
Assets And Liabilities, Lessee
Upon transition, on January 1, 2022, the Company recorded the following increases (decreases) to the respective line items on the Condensed Consolidated Balance Sheet:

(in thousands) Adjustment as of January 2, 2022
Prepaid expenses $ (773)
Operating right-of-use asset, net 57,385 
Finance right-of-use asset, net 855 
Deferred rent (900)
Short-term operating lease liability 9,457 
Short-term finance lease liability 143 
Long-term operating lease liability 49,149 
Long-term finance lease liability 712 
A summary of lease terms and discount rates for finance and operating leases is as follows:

Year Ended
January 2, 2023
Weighted-average remaining lease term (in years):
Operating leases 6.02 years
Finance leases 6.30 years
Weighted-average discount rate:
Operating leases 6.0  %
Finance leases 6.1  %
Lease, Cost A summary of finance and operating lease right-of-use assets and liabilities as of January 2, 2023 is as follows:
(in thousands) Classification Year Ended
January 2, 2023
Operating leases Operating right-of-use asset, net $ 45,741 
Finance leases Property & equipment, net 852 
Total right-of-use assets $ 46,593 
Operating leases:
Short-term operating lease liability $ 9,924 
Long-term operating lease liability 40,748 
Finance leases:
Short-term borrowings, including finance leases 150 
Long-term borrowings, including finance leases 783 
Total lease liabilities $ 51,604 

The components of lease expense for the year ended January 2, 2023 is as follows:

(in thousands) Classification Year Ended
January 2, 2023
Operating lease cost Occupancy and related expenses
Pre-opening costs
Store closure costs		 $ 12,969 
Operating lease impairment Asset impairment 3,846
Finance lease cost:
Amortization of right-of-use assets Depreciation and amortization expense 258 
Interest on lease liabilities Interest expense 63 
Less: Sublease income Occupancy and related expenses (194)
Total lease cost $ 16,942 
Schedule of approximate future minimum payments on operating leases
The maturity of the Company's operating and finance lease liabilities as of January 2, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
2023 $ 12,653  $ 200 
2024 11,040  184 
2025 9,544  170 
2026 7,728  159 
2027 6,318  152 
2028 and thereafter 13,442  253 
Total undiscounted lease payments 60,726  1,118 
Less: present value adjustment (10,054) (185)
Total net lease liabilities $ 50,672  $ 933 
Finance Lease, Liability, Fiscal Year Maturity
The maturity of the Company's operating and finance lease liabilities as of January 2, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
2023 $ 12,653  $ 200 
2024 11,040  184 
2025 9,544  170 
2026 7,728  159 
2027 6,318  152 
2028 and thereafter 13,442  253 
Total undiscounted lease payments 60,726  1,118 
Less: present value adjustment (10,054) (185)
Total net lease liabilities $ 50,672  $ 933